The Ban on Non-Compete Amendments Act of 2020 (the Act) is a sweeping piece of legislation that effectively bans the use of all non-compete agreements in the District of Columbia, regardless of income level. Once effective, the Act will: Prohibit the use and enforcement of non-compete agreements for all employees working in D.C., with limited exception; Prohibit anti-moonlighting and other workplace policies that prohibit an employee from...read more
Last week, the D.C. City Council passed one of the most sweeping bans on non-competition agreements in the country. The bill (B23-0494), which passed 12-0, would prohibit non-compete agreements for nearly all employees working in the District of Columbia, with an exception for certain medical professionals. Notably, the bill does not merely ban non-compete agreements for subsequent employment; it also bans non-compete agreements for...read more
A case decided this week by a Maryland federal court highlights the importance of careful drafting when it comes to non-compete agreements. Allied Fire Protection, Inc. v. Huy Thai, No. 17-551 (D. Md. 10/2/17). In this case, Allied Fire Protection sought to enforce such an agreement when defendant Thai, a high-level employee, left to join Allied’s competitor. Specifically, the agreement prohibited Thai from directly or indirectly engaging in...read more
On February 14, 2017, a federal judge denied a home builders’ motion for a preliminary injunction to stop a former employee covered by a non-compete agreement from working for a competing builder. Applying Virginia law, Judge Liam O’Grady of the United States District Court for the Eastern District of Virginia, Alexandria Division, ruled that the geographic scope of the non-compete was overbroad and, therefore, the agreement was invalid. NVR,...read more
Randi Klein Hyatt
This past week, President Obama signed into law the Defend Trade Secrets Act of 2016, which can be found here. The Act creates a federal cause of action for trade secret misappropriation, and complements the many state laws (typically based on the Uniform Trade Secrets Act) already in effect. The Act provides a claimant a number of strong tools. Perhaps most importantly, it allows for the ex parte seizure of the claimed trade secret upon affidavit...read more
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